Our team has broad and deep experience investing in media companies. We have invested successfully in numerous businesses with unique brands and content, scalable cost structures, and diverse revenue streams, and our companies have repeatedly demonstrated dependable cash flows and earnings growth.

Media companies often have very strong cash flow attributes because of their favorable working capital positions and low capital expenditure requirements, and they may also benefit from tax-advantaged acquisition structures. Certain of our portfolio companies, for example, convert over 90% of EBITDA to free cash flow, allowing them to pay down significant debt and access capital markets on relatively favorable terms.

Additionally, media investments often provide the opportunity to pursue numerous avenues for growth and the creation of additional value. First, media companies continue to explore the challenges and opportunities of the Internet as both a business and a distribution medium. We have had considerable success implementing a strategy of focused modest investments in online media capabilities across several portfolio companies that has yielded 20-50% three-year compound annual growth rates.

Second, the media industry’s competitive landscape is highly fragmented, providing numerous add-on acquisition opportunities in nearly every sector. For example, collectively three of our media portfolio companies have completed in excess of 25 add-on acquisitions at attractive valuations, generating significant operating synergies and equity value.

Third, because of our ownership of numerous media businesses, we have developed significant insight into best practices, potential cost savings, growth opportunities and management strength, mitigating the risk of any given investment.

Illustrative Media Investments:

Case Study: Prism/Penton Media

Case Study: American Lawyer Media Group